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Former Hospital CEO Arrested on Fraud Charge

Aug. 22, 2008 — Rodney E. Miller Sr., former president and chief executive officer of Schneider Regional Medical Center, was arrested Friday morning on St. Thomas on one count of fraudulent claims against the V.I. government.
Special agents from the V.I. Department of Justice's white-collar crime division apprehended Miller at 8 a.m. in his attorneys' office, according to a DOJ news release. More serious charges against Miller are in the works, an assistant attorney general said in court later Friday morning.
Justice officials charge that Miller tried to cover up a 1996 criminal conviction by providing false statements to the government on his employment application at SRMC. Although he claimed on his application that he received an honorable discharge, Justice officials say, Miller actually received a dishonorable discharge from the U.S. Navy after pleading guilty to nine counts of larceny and one count each of attempted larceny and obstruction of justice for a fraud and cover-up scheme.
Miller appeared later Friday morning in the courtroom of V.I. Superior Court Judge James Carroll III, where he was already scheduled to appear — along with SRMC Chief Operating Officer Peter Najawicz — to challenge a court-ordered freeze of his assets.
The order was a result of an ongoing investigation of the SRMC financial matters, which so far have resulted in Najawicz and Amos Carty, SRMC's chief executive officer, getting placed on leave. (See "Audit Claims Widespread Abuse of Schneider Hospital Funds.")
Miller, who had already posted $75,000 bail, was represented by attorneys William J. Glore of Dudley, Clark and Chang, and Charles J. Grant of Grant and Lebowitz, a Philadelphia, Penn., firm. He sat solemnly on the front row through the two-hour hearing on the freeze of assets before Carroll called him to appear on the arrest.
After informing Miller of his rights, Carroll asked Miller where he now lives. Miller moved to Weston, Fla., in 2007, where he said he still lives. The conditions of his bail will require regular visits to probation officers on St. Thomas and in Florida, Carroll said.
After resigning from SRMC, Miller moved to Florida, where he was serving as administrator of Memorial Regional Hospital in Hollywood, Fla. — a post he abruptly resigned last month. (See "Miller Resigns New Post as Hospital Administrator.")
Assistant Attorney General Denise George-Counts stressed that strict probation conditions be applied because, she said, "Additional charges will be filed of a more serious nature."
Carroll told Miller he would not be allowed to leave the territory until appropriate probation conditions are made.
Glore asked Carroll for a bail reduction, which Carrol instantly denied.
Miller is scheduled to appear Aug. 28 for arraignment before V.I. Superior Court Judge Brenda Hollar.
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